Figure 5-3 -Refer to Figure 5-3.At the Competitive Market Equilibrium,for the Last

question 182

Multiple Choice

Figure 5-3
-Refer to Figure 5-3.At the competitive market equilibrium,for the last unit produced

• A)the size of the external cost is Pm - Po.
• B)the size of the external benefit is Pm - Po.
• C)the size of the external cost is Pn - Po.
• D)the size of the external benefit is Pn - Po.

Understand the basic principles of a perfectly competitive market.

Analyze the relationship between marginal revenue, average revenue, and total revenue in competitive markets.

Comprehend the role of price takers within competitive markets.

Determine how firms in competitive markets establish a profit-maximizing level of production.

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